On April 19, 2002, we
completed the acquisition of the outstanding common stock of Mechanical
Dynamics, Inc. (MDI) through a tender offer. MDI developed, marketed and
supported functional virtual prototyping solutions that expanded our core
software offerings, complemented our existing product and service offerings and
increased our presence in the product lifecycle management market to better
serve customers. The acquisition of MDI has been accounted for as a purchase,
and accordingly, the results of operations of MDI since April 19, 2002 are
included in our consolidated statements of operations. See Note 3Business
Acquisitions in Notes to Consolidated Financial Statements.